The Various Lender-Of-Last-Resort Programs Implemented by the Fed in Response

question 97

Multiple Choice

The various lender-of-last-resort programs implemented by the Fed in response to the financial crisis of 2007 and 2008:

• A) severely depleted the assets of the Federal Reserve.
• B) have been little used,and therefore are ineffective.
• C) increased the moral hazard problem by limiting losses from bad financial decisions.
• D) were designed to offset the moral hazard created by the TARP and other bailout programs.

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